COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS

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COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS Ralph DLG. Torres Governor Victor B. Hocog Lieutenant Governor The Honorable Rafael S. Demapan Speaker, House of Representatives Nineteenth Northern Marianas Commonwealth Legislature Saipan, MP 96950.1.9, DEC 21)16 The Honorable Francisco M. Borja Senate President, The Senate Nineteenth Northern Marianas Commonwealth Legislature Saipan, MP 96950 Dear Mr. Speaker and Mr. President: This is to inform you that I have signed into law House Bill No. 19-212, HD2, entitled, "To make supplemental appropriations for the operations and activities of the Government of the Commonwealth of the Northern Mariana Islands for Fiscal Year 2017; and for other purposes," which was passed by the House of Representatives and the Senate of the Nineteenth Northern Marianas Commonwealth Legislature. This bill becomes Public Law No. 19-75. Copies bearing my signature are forwarded for your reference. Since ly, cc: Lt. Governor; Attorney General's Office; Commonwealth Healthcare Corporation; CNMI Medical Referral; Public School System; Special Assistant for Substance Abuse and Rehabilitation Program; Commonwealth utilities Corporation; Northern Marianas College; Northern Marianas Trade Institute; Department of Finance; Public Auditor; Special Assistant for Administration; Special Assistant for Programs and Legislative Review Caller Box lo007 Saipan, MP 96950 Telephone: (670) 237-2200 Facsimile: (670) 664-2211/2311

House of presentatives Public Law No. 19-75 19th NORTHERN MARIANAS COMMONWEALTH LEGISLATURE P.O. BOX 500586 SAIPAN, MP 96950 December 15, 2016 The Honorable Ralph DLG. Torres Governor Commonwealth of the Northern Mariana Islands Capitol Hill Saipan, MP 96950 Dear Governor Torres: I have the honor of transmitting herewith for your action H. B. No. 19-212, HD2, entitled: "To make supplemental appropriations for the operations and activities of the Government of the Commonwealth of the Northern Mariana Islands for Fiscal Year 2017; and for other purposes.", which was passed by the House of Representatives and the Senate of the Nineteenth Northern Marianas Commonwealth Legislature. Sincerely yours, Attachment

:Nineteentli Legis{ature oftlie Commonwea{tli of tfie :Nortfiern 'Jviariana Is{ands IN THE HOUSE OF REPRESENTATIVES Fourth Regular Session December 12, 2016 Representative Antonio P. Sablan, of Saipan, Precinct 1 (jor himseifj in an open and public meeting with an opportunity for the public to comment, introduced the following Bill: H. B. No. 19-212, HD2 AN ACT TO llikii SlJl'I'UI IIINT1U lu'i'iu)ljilii\tions HUl '1'1111 OPllllliTIONS lin)) li(;,l'lnl'ms 011 TlIII CJOVIIIlN IIINT 011 TlIII (;())UIONlflllU'l'lI 011 '1'111 NOilTIlIlllN 11UUliNli ISIANJ)S HHl I1IS(;lU YillUl 2017; lin)) HHl O'l'IIIlll l'ulujosiis. The Bill was not referred to a House Conunittee. THE BILL WAS PASSED BY THE HOUSE OF REPRESENTATIVES ON FIRST AND FINAL READING, DECEMBER 12, 2016; with amendments in the fonn of H. B. 19-212, HDI and transmitted to the THE SENATE. The Bill was not referred to a Senate Conunittee. THE BILL WAS PASSED BY THE SENATE ON FIRST AND FINAL READING, DECEMBER 14, 2016; without amendments and was returned to THE HOUSE OF REPRESENTATIVES. THE BILL WAS FINALLY PA SED ON DECEMBER 12, 2016.

J'Vineteentli egis{ature oftlie Commonweaftli Of tlie J'Vortliern :Mariana I stands IN THE HOUSE OF REPRESENTATIVES Tenth Day, Fourth Regular Session December 12, 2016 H. B. No. 19 212 HD2 AN ACT '1'0 tllu{)l SIJIJIJUltIlIN'I'lU lwijiu)ljlu1i'l'ions Hut '1'111 ()ljllull'l'ions linn licl'ivi'i'iiis 011 '1'1111 m)viiuntilln'i' 011 '1'111 (;mnion"'lllu'l'1i 011 T1111 NOItTllllUN tlluuiinll ISI.JINnS 11011 (lis(;lu YillUl 2017; linn 110U O'l'IIIIU IJUlUJOSIIS. Be it enacted by the Nineteenth Northern Marianas Commonwealth Legislature: Section 101. Findings and Purpose. 4 CMC 2308 provides that the gross revenue 2 tax generated from Casino license holder shall be appropriated for the Fuel Adjustment 3 Clause (formerly the Levelized Energy Adjustment Clause), the Commonwealth Healthcare 4 Corporation, the Medical Referral Program, the payment of land compensation judgments, 5 and the Public School System. This Act makes a supplemental appropriation of local funds 6 for the operations and activities of the Government of the Northern Mariana Islands set forth 7 in 1 CMC 2308 and as otherwise provided in this Act for Fiscal Year 2017 commencing 8 October 1, 2016 and ending September 30, 2017, as reflected under 9 House Concurrent Resolution No. 19-6.

1 CHAPTER II. ESTIMATED REVENUES 2 Section 201. Estimated Revenues. Governor Ralph DLG. Torres in a letter dated 3 December 5, 2016, has identified additional projected resources from the gross revenue tax 4 generated from Casino license holder in the amount of $47,000,000.00 for Fiscal Year 2017. 5 Of the projected amount, $40,967,307.88 has been collected and is available for 6 appropriation. 7 Section 202. The total revenue approved and identified for supplemental 8 appropriation for FY 2017 is $40,967,307.88 9 CHAPTER III. APPROPRlA TIONS. 10 Section 301. In General. 11 (a) Notwithstanding any laws to the contrary, the amount of $40,967,307.88 of the 12 funds designated in Chapter II are available for appropriation for FY 2017 for the purposes 13 and programs set forth in 4 CMC 2308 and as otherwise provided in this Act. 14 Section 302. Appropriation. 15 The amount of $40,967,307.00 is hereby appropriated and allocated as follows: 16 (a) $2,000,000.00 for the Fuel Adjustment Clause (FAC) Rate Subsidy. 17 (b) $7,000,000.00 for the Commonwealth Healthcare Corporation (CHCC) to 18 pay the outstanding balance owed by CHCC to the Commonwealth Utilities 19 Corporation. The expenditure authority shall be the Chief Executive Officer of the 20 Commonwealth Healthcare Corporation. 21 (c) Notwithstanding 4 CMC 2308, any laws, provisions or regulations to the 22 contrary, $1,000,000.00 for the Substance Abuse and Rehabilitation Program, under 2

the Office of the Governor, Business Unit No. 5018, to fund the substance abuse 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 program and support the Community Guidance Center programs and operations. The expenditure authority shall be the Special Assistant for Substance Abuse and Rehabilitation Program. This appropriation shall not be reprogrammed for any other purpose. The Special Assistant shall provide a quarterly expenditure report within 30 days after each quarter to the presiding officers of the legislature. (d) $2,000,000.00 for the Medical Referral Program for the following: (1) $1,600,000.00 shall be used to pay the outstanding obligations to the Guam Memorial Hospital and $400,000.00 shall be used to supplement the operations of the Medical Referral Program. (2) The expenditure authority shall be the Director of the Medical Referral Program. (e) Notwithstanding 4 CMC 2308, any laws, provisions or regulations to the contrary, $9,000,000.00 for the payment of land compensation stipulated, consented and/or other judgments derived therefrom. (1) The fuuds appropriated for payment of land compensation stipulated, consented and/or other judgments derived therefrom shall be paid in the following priority: (A) judgments and settlements between $1.00 and $50,000.00, regardless of the date of the final judgment or settlement, shall be paid in full; and 3

1 2 3 4 5 6 7 8 9 (B) judgments and settlements over $50,000.00 shall be paid on a proportional basis. (2) The Attorney General shall certify the amount of the stipulated, consented and/or other judgment or settlement derived therefrom to the Secretary of Finance. The expenditure authority shall be the Secretary of Finance. (1) $10,241,826.00 for the Public School System (PSS) shall be used for the following: (l) $2,700,000.00 shall be used to pay the outstanding balance owed 10 by PSS to the Commonwealth Utilities Corporation. II (2) $100,000.00 shall be used to pay the outstanding balance owed by 12 13 PSS for the school meal vendors. (3) $100,000.00 shall be used to pay school repairs and maintenance. 14 (4) $1,000,000.00 shall be used to purchase five school buses. 15 (5) $5,541,826.00 shall be used to purchase primary instructional 16 materials for language arts, math, science, and social studies. 17 (6) $300,000.00 shall be equally divided so that $150,000.00 shall be 18 used for the Sinapal0 Elementary School and $150,000.00 for Dr. Rita Inos 19 Jr./Sr. High School for the schools' operations, furniture and fixtures, and 20 21 repair of benches and facilities. (7) $500,000.00 shall be used for the Tinian public schools to replace 22 the perimeter fence of the Tinian Elementary School and for other required 4

1 2 3 4 5 6 7 8 9 10 11 facilities repairs at the Tinian Elementary School and Tinian Junior/Sr. High School. (8) The expenditure authority shall be the Commissioner of Education. (9) The funds appropriated to the PSS under subsection (f) of this section shall not be reprogrammed. (g) Notwithstanding 4 CMC 2308 and any laws to the contrary, the amount of $3,500,000.00 shall be equally distributed to pay a bonus to the retirees and retiree's beneficiaries. The expenditure of this appropriation shall be the Secretary of Finance. (h) Notwithstanding 4 CMC 2308, the amount of$i,451,365.00 shall be used to pay the outstanding retroactive lump-sum payment to active and inactive 12 employees, whose wages were frozen at Step 12, pursuant to Public Law No. 1 0-76 13 and as amended by Public Law No. 11-59. The expenditure authority shall be the 14 Secretary of Finance. 15 (i) Notwithstanding 4 CMC 2308, the amount of $3,624,116.00 shall be used 16 to pay for outstanding balance owed to the Commonwealth Utilities Corporation and 17 outstanding telecommunication billings by the central government. The expenditure 18 authority shall be the Secretary of Finance. 19 U) Notwithstanding 4 CMC 2308, the amount of $1,000,000.00 is 20 appropriated for the Northern Marianas College. The expenditure authority shall be 21 the NMC President. 5

1 (k) Notwithstanding 4 CMC 2308, the amount of $150,000.00 is 2 appropriated for the Northern Marianas Trade Institute. The expenditure authority 3 shall be the NMTI Chief Executive Officer." 4 CHAPTER IV. GENERAL PROVISIONS 5 Section 401. Severabilitv. If any provision of this Act, or its application to any 6 person or circumstance, is held invalid, the invalidity does not affect other provisions or 7 applications of the Act which can be given effect without the invalid provision or 8 applications, and to this end the provisions of this Act are severable. 9 Section 402. Savings Clause. This Act and any repealer contained herein shall not be 10 construed as affecting any existing right acquired under contract or acquired under statutes 11 repealed or under any rule, regulation or order adopted under the statutes. Repealers contained 12 in this Act shall not affect any proceeding instituted under or pursuant to prior law. The 13 enactment of this Act shall not have the effect of terminating, or in any way modifying, any 14 liability civil or criminal, which shall already be in existence at the date this Act becomes IS effective. 6

1 Section 403. Effective Date. This Act shall take effect upon its approval by the 2 Governor, or its becoming law without such approval. Attested to by: Lin Certified by: --'--LHt-=--- this (l J) day of, 2016 ES Govern Commonwealth o/the Northern Mariana Islands 7